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Algeria

METAC’s resources are available to (i) identify and design measures
to strengthen specific aspects of economic and financial management;
(ii) prepare detailed implementation plans based on the diagnostic
work conducted by IMF-Headquarters; (iii) provide policy and technical
advice either by the Center’s resident advisers or by experts from the
IMF roster; (iv) organize hands-on training, seminars, workshops to
allow for peer-to-peer learning and disseminate good practices; (v)
review proposals by governments for consistency with internationally
agreed standards, and (vi) coordinate activities with other technical
assistance providers.

The oil price shock has hit Algeria’s economy hard and exposed the
longstanding vulnerabilities of an economy highly dependent on
hydrocarbons. The IMF staff report for the 2016 Article IV
Consultation highlighted the need to achieve a durable and ambitious
fiscal consolidation over the medium term, deep structural reforms are
necessary to offset the impact of fiscal consolidation on growth, and
reduce the dependence on oil, by greater exchange rate flexibility, a
carefully calibrated monetary policy that guards against inflation,
and policies to mitigate risks in the banking system. Against this
background, METAC’s assistance focuses on supporting the authorities’
efforts aimed at strengthening the medium-term budget framework,
developing a fiscal risk management framework, upgrading Bank of
Algeria’s regulatory framework in line with Pillar 2 of Basel II, and
building its related implementation capacity.